9M 2016 Financial Results

Transcription

1 9M 2016 Financial Results Presentation December 1, 2016 December 2016 Public Final Page 1 of 20

2 9M16 Results Consolidated Financial Statements For The 9 Months Ended September 30th, 2016 % % (in million) 9M16 9M15 3Q16 3Q15 Change Change Revenues (Turnover) % % Gross Profit % % EBITDA % % EBITDA Margin (%) 12.9% 13.5% -0.6pps 10.9% 14.8% -3.9pps EBT % EBT Margin (%) 1.9% 3.4% -1.6pps -0.6% 1.8% -2.4pps NIATMI December 2016 Public Final Page 2 of 20

3 3Q16 performance +7.0% Key metrics ( mm) Revenues Key takeaways Strong increase in revenues both in 3Q16 and 9M16 (+16.2% and +7.0% respectively, compared to the same prior year period) Margin: EBITDA Operating cash flow Net capex M15 9M16 3Q15 3Q % 12.9% 14.8% 10.9% +2.4% -14.3% M15 9M16 3Q15 3Q M M % 121 9M M16 Note: 3Q15 & 3Q16 results do not include discontinued operations in Italy and Peru 1 Purchases of tangible and intangible assets less proceeds from sales of tangible and intangible assets Increased sales in Bulgaria, Turkey and North America more than counterbalanced decreased sales in Azerbaijan and South America (Argentina, Jamaica and Brazil) EBITDA dropped by 14.3% y-o-y in 3Q16, but it increased by 2.4% in 9M16. EBITDA margin contracted by 3.9pps y-o-y in 3Q16 but only by 0.6pps y-o-y in 9M16, absorbing a 3.8pps increase in payout. Operating Cash-flow almost doubled in 9M16, at 121.1m vs. 64.8m in 9M15. The growth is mainly attributed to the WC improvement (+2.9m in 9M16 from -46.8m in 9M15). INTRALOT Q3 was marked by aggressive organic revenue growth, as a result of the company strategy for launching new products and services and reaping fruits of new projects. Recent milestone developments of a successful early refinancing of a 250m bond in September with significantly better terms that lead to cumulative savings of up to 65m savings in debt-servicing costs and extension of maturities to 2021 combined with the collection of USD 68.7m in cash from the disposal of 80% of our operation in Peru have drastically improved our financial position and capacity to meet our targets of significantly reduced net debt and improved cash position by the end of Antonios Kerastaris, Group CEO December 2016 Public Final Page 3 of 20

4 Overview of key financial metrics Revenues EBITDA and EBITDA margin m Revenues m EBITDA EBITDA margin 1,800 1,500 1, ,539 1,853 1, % % 9.3% % 12.9% % 10.0% 5.0% A 2014A 2015A 9M15 9M A 2014A 2015A 9M15 9M16 0.0% Operating cash flow and capex Net debt 1 and Net debt / EBITDA 2 m Operating cash flow Capex m Net debt Net debt / EBITDA A 2014A 2015A 9M15 9M x 2.7x 2.9x 2.1x 2.2x A 2014A 2015A 9M16 9M16 Adj. 3.5x 3.0x 2.5x 2.0x 1.5x 1.0x 0.5x 0.0x Note: 9M15 & 19M6 results do not include discontinued operations in Italy and Peru 1 Net debt calculated as Long-term debt plus Short-term debt and current portion of long-term debt plus Financial Leases less Cash and cash equivalents 2 Calculated as Net debt divided by LTM EBITDA Adjusted for the proceeds of the Peruvian transaction: 62.3m & the redemption premium of the 2018 bond: 10.8m December 2016 Public Final Page 4 of 20

5 9M16 Management Results Consolidated Income Statement for the 9 Months Ended September 30 th, 2016 (in million) 9M16 9M15 % or pp change Revenues % Technology, Management & Rest Contracts % Licensed Operations (Payout related) % Payout (%) 69.7% 66.0% 3.7pps GGR % GGR (% Revenue) 52.2% 53.6% -1.4pps nggr % nggr (% GGR) 77.3% 76.6% 0.7pps EBITDA % EBITDA (% GGR) 24.8% 25.2% -0.5pps The Group demonstrated moderate EBITDA growth due to strong top line growth that absorbed the 3.74bp in Payout increase December 2016 Public Final Page 5 of 20

6 Refinancing September 2016 Senior Note, FY % 1 Buy Back: c. 28.3m as of 31/12 Maturity 2018 New Senior Note 6.75% Maturity 2021 Expenses Refinancing expenses up to 10.0m Around 15.0m call premium paid Savings Recurring annual savings of 12.0m RCF 200.0m New RCF Committed lines for 240.0m Completion expected early next week 1. All in senior note cost at 10.0% with coupon at 9.75% at % December 2016 Public Final Page 6 of 20

7 Segmental Analysis December 2016 Public Final Page 7 of 20

8 Contract type Sales Breakdown Operation and control over every aspect of the lottery Licensed Operations Management Contracts Day-to-day operations Marketing POS optimization Risk management Technology HW & SW Telecom solutions Maintenance Support Licensed Operations 74.7% 9M 2016 Sales Breakdown Management Contracts 8.6% Technology 16.7% Licensed Operations 76.1% 9M 2015 Sales Breakdown Management Contracts 7.7% Technology 16.2% December 2016 Public Final Page 8 of 20

9 Revenue per Product Analysis 80.0% 70.0% 60.0% Revenues Growth Analysis 9M16 vs 9M % 50.0% 40.0% 30.0% 20.0% 10.0% 2.4% 11.1% 5.8% 7.0% 0.0% -10.0% -20.0% -30.0% -40.0% -27.7% -50.0% Sports Betting Numerical VLTs/ AWPs Racing IT products & services, etc Consolidated revenues December 2016 Public Final Page 9 of 20

10 Revenue per Product Contribution Revenue Analysis 9M16 Sports % of total 34.3% Racing % of total 2.6% IT products & services, etc % of total 11.4% VLTs/AWPs % of total 3.0% Numerical % of total 48.8% December 2016 Public Final Page 10 of 20

11 Wagers Regional Analysis 9M16 40% % chg in Euro 30% 22.6% 20% 11.7% 10% 0% 3.2% 1.4% 2.1% 1.0% East Europe West Europe Total Europe North America South America Asia Africa Total -10% -6.5% -13.5% -20% December 2016 Public Final Page 11 of 20

12 Wagers Contribution per region Wagers Analysis per region 9M16 in Euro million Africa 190 East Europe 2,478 Asia 5,559 South America 612 North America 4,706 West Europe 3,744 Total Wagers 17.3bn (+1.0% y-o-y) December 2016 Public Final Page 12 of 20

13 Recent Developments December 2016 Public Final Page 13 of 20

14 Peru Transaction Overview On November 24, 2016, the INTRALOT Group, transferred an 80% stake of the Group s operations in Peru to NG Entertainment Peru S.A.C. for a cash consideration of USD 68.7m ( 62.3m). The INTRALOT Group will maintain its presence in the Peruvian market by keeping the remaining 20% and will continue to provide the local operations with technological services and solutions for a minimum annual fee of 2.0m USD for up to 100m USD turnover, plus 1% of turnover there above. The transaction is a key event for INTRALOT in establishing strategic partnerships with strong local partners, who offer substantial market knowledge and synergies potential. INTRALOT s activities in Peru, a country with a population of 30.3m people, include the operation of various types of numerical games and sports betting, which are offered through a network of 3,700 POS and the Internet. NG Entertainment is part of the Peru-based private equity firm Nexus Group, which focuses on investment opportunities in the country. The Nexus Group s numerous investments also include holdings in retail chains in Peru, namely two supermarket chains and six restaurant chains. December 2016 Public Final Page 14 of 20

15 Co-operation with Amelco Amelco s platform Platform offers 32,000 events per month 19,000 in-play events per month 800+ unique betting opportunities pre-match and in-play Highly customizable & versatile Sportsbook design Internet platform & Mobile Powerful segmentation tools of customer base integration with CRM Multiple bet slips and bet types supported Overask platform permits negotiation of special bets between punters and traders Multiple customer bonus structures supported / Detailed monitoring of campaigns Strategic partnership between INTRALOT and Amelco following the signing of a binding MoU on November 24, Single solution from both INTRALOT s strong retail expertise along with Amelco`s state of the art online betting platform. Amelco s platform is currently used by numerous leading sports betting operators around the world. Significant boost to INTRALOT's sports betting product in all of its betting operations, both B2C and B2B. The Definitive Agreement between the two parties is expected to be finalized within 1Q17. Sophisticated agent management create further potential to grow business In-house trading team The partnership will combine INTRALOT s solid retail expertise with Amelco's strong online betting platform to a unique omni-channel Sportsbook Suite. December 2016 Public Final Page 15 of 20

16 Appendix Summary Financial Statements December 2016 Public Final Page 16 of 20

17 9M16 Group Income Statement Consolidated Income Statement for the 9 Months Ended September 30 th, 2016 (in million) 9M16 9M15 % change Revenues % Gross Profit % Other Operating Income % OPEX % EBITDA % margin 12.9% 13.5% EBIT % Interest expense (net) Exchange differences Other EBT % NIATMI NIATMI continuing NIATMI discontinuing December 2016 Public Final Page 17 of 20

18 9M16 Group Balance Sheet (in million) 30/9/ /12/2015 Tangible Assets Intangible Assets Other Non-Current Assets Inventories Trade receivables Other Current Assets TOTAL ASSETS 1, ,169.3 Share Capital Other Equity Elements Non-Controlling Interests Total Shareholders Equity Long-term Debt Provisions/ Other Long term Liabilities Short-term Debt Other Short-term Liabilities Total Liabilities 1, TOTAL EQUITY AND LIABILITIES 1, ,169.3 December 2016 Public Final Page 18 of 20

19 9M16 Group Cash Flow (in million) 9M16 9M15 EBT from continuing operations EBT from discontinuing operations Plus/less Adjustments Decrease/(increase) of Inventories Decrease/(increase) of Receivable Accounts (Decrease)/increase of Payable Accounts Income Tax Paid Net Cash from Operating Activities CAPEX (Purchases) / Sales of subsidiaries & other investments Interest received Dividends received Net Cash from Investing Activities Subsidiary share capital return Repurchase of own shares Cash inflows from loans Repayment of loans Bond buy-backs Repayment of Leasing Obligations Interest and similar charges paid Dividends paid Net Cash from Financing Activities Net increase / (decrease) in cash for the period Exchange differences Cash at the beginning of the period Cash at the end of the period from total operations Less: Cash at the end of the period from discontinued operations Cash at the end of the period from continuing operations December 2016 Public Final Page 19 of 20

20 .A GLOBAL LEADER. YOUR LOCAL PARTNER December 2016 Public Final Page 20 of 20